Table 13-12 Eileen's Elegant Earrings Produces Pairs of Earrings for Its Mail

question 348

Multiple Choice

Table 13-12
Eileen's Elegant Earrings produces pairs of earrings for its mail order catalogue business. Each pair is shipped in a separate box. She rents a small room for $150 a week in the downtown business district that serves as her factory. She can hire workers for $275 a week. There are no implicit costs.
-Refer to Table 13-12. What is the total cost associated with making 890 boxes of earrings per week?

• A)$1,250
• B)$1,325
• C)$1,400
• D)$1,575

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